freelance - handle tax?
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- ldww
so i got an offer for a almost full time freelance gig in nyc, i would work out of their office. but they want to pay my contract. making not too bad of an amount, but i am trying to figure out how much i should plan on loosing when i pay taxes. how do all you freelancers handle it, do you have an accountant? tips, please.
- unknown0
basically plan for 27% to go towards tax. Unless your making a shitload, then it would be more. Bet that offer doesn't seem that great now...
Time to ask for more money?
- aviary0
I would talk it over with a tax professional or accountant before you make any decisions.
There is a lot you can do for yourself as far as write-offs, planning, etc. but you really have to stay on top of it. Figure that it will be a good deal of extra responsibility on your shoulders instead of your company's.
Could be good, maybe not.. ask the pros.
- aviary0
P.S. The IRS might not approve of your setup if you are working fulltime out of their office. They may see you as an employee of the company - set up for your protection actually.
If you are working as essentially a fulltime employee they should be giving you benefits etc.
Look into it.
- Graffodisiak0
30% will go on taxes. But you will have some expenses that can help you at the end of the year, keep receipts for all of the related work stuff, research (like books), cell phone, internet connection and other stuff
this also might come in helpfull if you freelance and still want medical benefits
http://www.freelancersunion.org/…and also keep in mind that NYC is very expensive
good luck
- langford0
if you make less than $500 annually then you owe no taxes, but i suppose to intend to earn more than that.
http://www.nolo.com/ -- tax-related legalities for the independent contractor
- taragee0
not 100% sure but - i think nyc is wayyy more than 27% - cuz i think u get state AND city taken out - id ask some other nyc freelancers :/
- ldww0
joyride, what would you consider a shitload?
- ldww0
btw, the whole thing i think they are doing is trying to get me JUST under fulltime. that way they do not have to pay medical and shit.
i work for them now, but only a little bit each week, but i am on board as an hourly employee. because i am VERY not fond of contract work - i hate the irs. just trying to figure if this is worth it or not.
- Graffodisiak0
dude i live in NYC and i used to freelance fulltime. so read that shit that i posted before and get a good accountant to do your taxes at the end of the year...good accountant=little tax to pay :P
- unknown0
For freelance my definition of "shitload", ie. you doing it alone, $125k +. Puts you in a whole new tax bracket. More like 35% taxed. But like they said. Keep track of everything for writeoffs. Computer and software are goodones but you usually have to write them off over a few years. Damn IRS! Best bet is to talk to an accountant. It might be better to inc. and just pay yourself. Then you might be able to write a little more off. This of course from a tax and legal standpoint.
- fuckfascists0
thats bullshit. they should just hire you. that irritates me :(
as for tax. i always say save 1/3 and youll have extra when tax time comes around. definitely save all reciepts. but im not sure what will change because its on site
- ldww0
bump
anyone else? how would i find a good accountant - i have no idea about that stuff?
- joyride0
have you guys (and gals) ever heard of this http://www.score.org/
Great resource for questions and its all free. See if they have someone to help.
Also. if your city has a chamber of commerce. Sometimes they have some good advice also. You might get some clients too.My cpa's are my family and a good friend. They have always answered all my tax questions.
Good luck.